v3.26.3
Segments
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segments
18. Segments
Talen’s operating segments are based on the market areas in which our generation facilities operate and reflect the manner in which our Chief Executive Officer, who is the chief operating decision maker (the “CODM”), reviews results. Adjusted EBITDA is the key profit metric used by the CODM to review segment performance and allocate resources as it provides a clearer view of segment profitability by focusing on operational performance. Total assets or other asset metrics are not considered a key metric or reviewed by the chief operating decision maker.
“PJM” represents electricity generation, marketing activities, and commodity risk and fuel management within the PJM market and is comprised of Susquehanna and Talen’s natural gas and coal generation facilities in PJM.
“Other” represents an operating segment that includes the operating and marketing activities of Talen Montana’s proportionate share of Colstrip in the WECC market and other non-material operating and development activities.
“Corporate and Eliminations” represents a non-reportable segment that includes: (i) general and administrative expenses incurred by our corporate function; (ii) interest expense and other corporate activities not allocated to our operating segments; and (iii) intercompany eliminations. This grouping is presented to reconcile the reportable segments to our consolidated results.
PJMOtherCorporate and EliminationsTotal
Three Months Ended September 30, 2026
Operating revenues$1,319 $27 $(19)$1,327 
Operation, maintenance and development expenses (a)
160 7 
Interest expense and other finance charges— — 148 148 
Other segment items (b)
475 
Adjusted EBITDA684 
Capital expenditures76 147 2 225 
Three Months Ended September 30, 2025
Operating revenues$755 $75 $(18)$812 
Operation, maintenance and development expenses (a)
124 7 
Interest expense and other finance charges— — 67 67 
Other segment items (b)
266 
Adjusted EBITDA365 
Capital expenditures61 3 1 65 
Nine Months Ended September 30, 2026
Operating revenues$3,169 $68 $(34)$3,203 
Operation, maintenance and development expenses (a)
520 22 
Interest expense and other finance charges— — 481 481 
Other segment items (b)
1,108 
Adjusted EBITDA
1,541 
Capital expenditures195 273 4 472 
Nine Months Ended September 30, 2025
Operating revenues$1,760 $116 $(44)$1,832 
Operation, maintenance and development expenses (a)
442 27 
Interest expense and other finance charges— — 203 203 
Other segment items (b)
629 
Adjusted EBITDA
689 
Capital expenditures156 8 2 166 
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(a)This significant segment expense category aligns with the segment-level information that is regularly reviewed by the CODM.
(b)Other segment items are primarily comprised of fuel and energy purchases.
Reconciliation of Segment Adjusted EBITDA to Income (Loss) Before Income Taxes:
 Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
PJM Segment Adjusted EBITDA$684 $365 $1,541 $689 
Reconciling Items:
Interest expense and other finance charges$(148)$(67)$(481)$(203)
Depreciation, amortization and accretion (a)
(122)(61)(273)(198)
Nuclear fuel amortization (a)
(27)(27)(73)(71)
Unrealized gain (loss) on commodity derivative contracts(190)36 (555)(54)
Nuclear decommissioning trust funds gain (loss), net18 81 130 149 
Stock-based and other long-term incentive compensation expense(54)(18)(127)(49)
Gain (loss) on asset sales, net (Note 17)66 25 69 36 
Non-cash impairments and other charges(1)(1)(2)(11)
Acquisition and divestiture activities (b)
(2)(8)(39)(12)
Operational and other restructuring activities(4)(3)(11)(6)
"Other" operating segment6 16 21 24 
Corporate and Eliminations(21)(18)(46)(60)
Other items(10)(16)(7)(20)
Income (Loss) Before Income Taxes$195 $304 $147 $214 
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(a)Includes the periodic amortization of fair value adjustments associated with acquired fuel supply contract liabilities and intangible assets.
(b)Includes the non-recurring: (i) advisory fees associated with completed acquisitions and divestitures; (ii) remaining settlements on contracts of divested assets; and (iii) non-recurring finance fees charged to the Consolidated Statement of Operations associated with acquisition financing fee arrangements.